QS just announced an R&D deal with Honda, and that’s a pretty big deal overall. Now, this company has been bleeding money like a stuck pig for years – negative net losses of $400 million+ per year from 2022 to 2024+ – and yet, they haven’t engaged in much stock dilution. Given how their net debt/income looks, they’ve simply converted outstanding shares into tradable shares over the past few years with some dilution in the mix. I’d love to see this more often, which makes the show less watered down. However, the stock’s float has nearly doubled as of 2022 – so far.

The technical picture we see is a cautious one, as the double AVWAP resistance envelope formed by the previous major high and low represents a very difficult resistance to break and will almost certainly face heavy resistance when the price tries to break it. The stock’s high float (nearly 20%) indicates that the bears are confident to sell this stock as well and may do so aggressively. The wave counting I’ve shown here is not very reliable and feels a bit forced.

One thing is certain though:

The price will almost certainly test the major resistance area at $10

It will be interesting to see how this is fully implemented.

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